I followed the following instructions:
http://www.symantec.com/business/support/index?page=content&id=HOWTO3726
I noticed however that the package server was still downloading packages from the source server. I also noticed the following in the package server Altiris Agent log file:
Cannot lock work folder The process cannot access the file because it is being used by another process. (-2147024809).
I was wondering what the above message means and why the package server was downloading the content of the packages when it really only needed the snapshot.xml, log.xml and package.xml data and to validate the files in the cache folder.